Define each of the following terms:
a. Project cash flow; accounting income
b. Incremental cash flow; sunk cost; opportunity cost; externality; cannibalization;
expansion project; replacement project
c. Net operating working capital changes; salvage value
d. Stand-alone risk; corporate (within-firm) risk; market (beta) risk
e. Sensitivity analysis; scenario analysis; Monte Carlo simulation analysis
f. Risk-adjusted discount rate; project cost of capital
g. Decision tree; staged decision tree; decision node; branch
h. Real options; managerial options; strategic options; embedded options
i. Investment timing option; growth option; abandonment option; flexibility option